The Customs and Excise Act (Chapter 23.02) provides for importation of goods into Zimbabwe by post. Goods imported by post are liable to duty just like goods imported through other modes of transport. All imported goods including mail articles are assessed for protection of citizens, permits and approval requirements. Where goods are received from out of the country through mail handled by postal authorities and addressed to an individual, the recipient is the importer of those goods or parcel. DECLARATION The sender should affix a form or label to the parcel, which should indicate the description of goods contained in the parcel, quantity, origin and value. The form or label acts as a declaration and it is binding to the importer.   CUSTOMS CLEARANCE OF PARCELS The parcels are availed to ZIMRA for examination, which entails physical confirmation of the contents against declaration affixed on the parcel and assessment of any duty due thereon. If any goods contained in a parcel or package imported by post do not agree with the description, quantity, value or origin entered on the declaration, the goods are liable to seizure. The importer is also liable to a fine for undervaluation or false declaration as specified in the Customs & Excise Act.   AFTER EXAMINATION AND ASSESSMENT       Where no duty is due, the goods will be Passed-By-Customs (PBC) and the parcel handed over to ZIMPOST for delivery without any customs charges or duty.       Where duty is due; a Charged Parcel Docket (CPD) will be completed and affixed to the parcel.       Duty will be collected in the following scenarios ·         Gifts exceeding US$75.00 ·         Commercial importations ·         Private importations other than gifts. The client will be informed of the duty due and is expected to pay through ZIMPOST, for the parcel to be released at the local post office.   GIFT REBATE FOR PARCELS IMPORTED BY POST A rebate of duty of an amount equivalent to US$75.00 is granted in respect of a bona fide gift sent to a private individual or family residing in Zimbabwe for his or their personal use. This rebate covers only goods with a total value for duty purpose not exceeding US$75.00 and it is granted only once during a period of thirty days. The rebate does not apply to- ü  Goods imported by a traveler in his baggage or upon his person. ü  Alcoholic beverages. ü  Goods which are not properly declared ü  Goods for commercial purposes. ü  Goods purchased by a Zimbabwean Resident online and delivered by post.   COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe. My Taxes, My Duties: Building my Zimbabwe!!   Disclaimer This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.  To contact ZIMRA: WhatsApp line:                           +263 782 729 862        Visit our website:                         www. zimra.co.zw Follow us on Twitter:                   @Zimra_11 Like us on Facebook:                   www.facebook.com/ZIMRA.ZW Send us an e-mail:                       This email address is being protected from spambots. You need JavaScript enabled to view it./webmaster@zimra.co.zw Call us (Head Office):                    0242 –758891/5; 790813; 790814; 781345; 751624; 752731 e-TIP:                                            http://ecustoms.zimra.co.zw/etip

What Is Fiscalisation?

Fiscalisation is the capturing of tax data or information on sales using fiscal gadgets. As businesses record their tax data and sales, the information is concurrently transmitted into the ZIMRA server. The data captured cannot be altered.

Who is required to fiscalise?

All VAT registered operators are required to fiscalise their operations and ensure the devices are interfaced with ZIMRA systems.

What are fiscal devices?

Fiscal devices are electronic devices, which contain a “fiscal memory”. A “fiscal memory” is a special read only memory which is permanently built into a fiscalised device to store tax information at the time of the sale. There are therefore three, categories of fiscal devices, from which clients can choose from depending on their nature of business:

1. 1. Fiscalised electronic registers/ electronic tax registers (ETRs)

• These are manual stand-alone devices similar to cash registers, the difference being that they have a fiscal memory.
• These devices have a 3G sim card that transmits data to the ZIMRA server as sales are being receipted.
• The device is suitable for small to medium retail businesses that issue out receipts to their customers for example small grocery shops, hair salons, clothing boutiques, restaurants, bars, hardware and tuck shops.
• A product list is uploaded on to the device and each product is coded for ease of reference when transacting.

2. Fiscalised printers

• These are small printers attached to point of sale or computer systems.
• Fiscal printers work with point of sale/computer systems that use retail software. They also have a fiscal memory for recording sales at the time of printing and also a 3G sim-card that transmits data to the ZIMRA server.
• Fiscal printers are suitable for small, medium and large clients in retail business that have computerised systems and issue out receipts for example supermarkets, hardware, furniture retailers, restaurants and other retail shops.

3. 3. Electronic signature devices

• These devices affix digital signatures to transactions and are not suitable for clients who issue manual invoices.
• These devices are connected to an already existing computer invoicing system.
• Data is sent to the ZIMRA server as the client issues the invoice via a data sim card that is in the device.
• These devices are suitable for registered operators who issue tax invoices to their clients.

Fiscal Device Interface

All registered devices should be interfaced to the ZIMRA Server. Therefore, Registered Operators should approach their Approved Suppliers of the fiscal gadgets and get assistance on interface. This is in line with SI 153 of 2016 which required all registered fiscal devices to be interfaced by 31 December 2017.

Fiscalisation in the Multi-Currently Era

With the use of multi-currency in our economy, we have witnessed different operators using multiple currencies. clients are under obligation to record the sales using the appropriate device. In this regard clients are advised to visit their respective electronic device suppliers in order to get the correct configuration that allows for the right invoicing in multiple currencies.

Obligations of Value Added Tax Registered Operators

• To acquire appropriate devices from approved suppliers
• To integrate their systems to the device (including interfaces)
• To register the devices with ZIMRA by completing and submitting to ZIMRA Form FRT1.

N.B. Form FRT1 can be obtained from ZIMRA offices, from the approved suppliers or the ZIMRA website (www.zimra.co.zw).

• To ensure there is back up power supply capable of lasting at least eight hours from the time the power supply ceased.
• To liaise with the supplier on the following issues:

1. i)       On installation and configuration of the devices onto the client`s system.
2. ii)      Programming the gadget into fiscal mode.

iii)    Print test Z-Report indicating that the device is now in fiscal mode

• To liaise with the ZIMRA on the following issues:

1. i)        Confirmation that the device is working and ready to record tax information.
2. ii)      To seal the device.

N.B. This indicates that the device is ready for use.

What are the consequences of not fiscalising on time?

According to Section 10 (1) of SI 104 of 2010 penalties for failure to fiscalise are pegged at $25 per day up to a maximum of 181 days. To avoid these penalties clients, need to fiscalise and also notify ZIMRA when they start the process of fiscalising. Failure to interface with the ZIMRA Server will attract penalties for each point of sale that remains not interfaced and prosecution procedures maybe instituted if one continues to be in default.

COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

Importation of goods in Zimbabwe can be restricted, prohibited or done freely without any restrictions. The Ministry of Industry and Commerce restricts importation of certain goods in terms of the Control of Goods (Import and Export) (Commerce) Regulations of 1974. These were published through government notice 766 of 1974. Generally, through the years, there has been several amendments to restrictions on importation as governed by the Ministry of Industry and Commerce.

The first schedule (which lists the goods requiring a licence on import) of the Control of Goods (Import and Export) (Commerce) Regulations of 1974 has been amended through Statutory Instrument 89 of 2021 by the insertion of the following goods.

1. Second Hand Motor Vehicles which are ten years or older from the date of manufacture

Second hand motor vehicles which are 10 years or older from the date of manufacture at the time of importation shall require an Import Licence from the Ministry of Industry and Commerce

The Motor Vehicles include the following irrespective of whether it is propelled by an electric motor, compression or spark ignition internal combustion piston engine:

• Motor Cars and Motor Vehicles for the transport of ten or more persons including the driver (e.g. motor buses, coaches, trolleybuses and gyro buses) having any type of motor classified under Heading 8702 of the Customs Tariff.
• Motor Cars and other Motor Vehicles classified under Heading 8703 of the Customs Tariff principally designed for the transport of persons such as Station wagons,
• Racing cars,
• Vehicles specially designed for traveling on snow, golf cars and similar cars
• Motor cars (such as limousines, taxis, sports cars and racing cars),
• Specialised transport vehicles (such as ambulances, prison vans and hearses),
• Motor homes (i.e. vehicles equipped for habitation),
• Four wheeled motor vehicles having a motor car type steering system
• Motor Vehicles for the Transport of Goods with a Gross Vehicle Mass not exceeding 5 Tonnes (excluding specialised vehicles used in mining) classified under Headings 8704.2120, 8704.2130, 8704.2140, 8704.2190, 8704.3120, 8704.3130, 8704.3140 and 8704.3190 of the Customs Tariff commonly referred to as Double Cabs or Twin Cabs.

The import licence will not apply to Commercial vehicles for example tractors, haulage trucks, earth moving equipment and other specialised vehicles used in mining and construction sectors 

 

2. Sugar

An Import licence from the Ministry of Industry and Commerce is now required for the importation of sugar into Zimbabwe.

The controlled sugar includes:

• Cane or Beet Sugar, chemically pure sucrose in solid form, classified in Heading 1701 of the Customs Tariff.
• Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel classified in Heading 1702 of the Customs Tariff.
• Molasses resulting from the extraction or refining of sugar classified under heading 1703 of the Customs Tariff.
• Sugar confectionery (including white chocolate), not containing cocoa. Sweets are however exempt from the requirement of an import licence

3. Cement

Requirements for an import licence shall apply to Portland Cement as described below:

2523. White cement whether or not artificially coloured classified under Tariff Heading 2523.2100 of the Customs Tariff.
2524. Any other Portland Cement classified under Tariff Heading 2523.2900 of the Customs Tariff.

This notice came into effect on the 2^nd of April 2021.Accordingly, all the above goods imported (after the specified date), without an Import Licence from the Ministry of Industry and Commerce shall be detained pending production of the importing licence. Goods for which a permit is not granted by Ministry of Industry and Commerce shall not be released to the owner.

Please note that it is an offence in terms of Section 48 of the Customs and Excise Act to import controlled goods without the required permit or licence. Importers are therefore encouraged to obtain the licence before importation of these goods to avoid unnecessary delays at the entry points.

COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

To contact ZIMRA: WhatsApp line:                           +263 782 729 862   Visit our website:                         www. zimra.co.zw Follow us on Twitter:                   @Zimra_11 Like us on Facebook:                   www.facebook.com/ZIMRA.ZW Send us an e-mail:                       This email address is being protected from spambots. You need JavaScript enabled to view it./webmaster@zimra.co.zw Call us (Head Office):                   0242 –758891/5; 790813; 790814; 781345; 751624; 752731 e-TIP:                                            http://ecustoms.zimra.co.zw/etip

BENEFITS OF FISCALISATION

Fiscalisation presents quite a number of benefits that come with complying with the requirement to fiscalise.

 

What is Fiscalisation?

• It is the use of fiscal devices to record taxable transactions and other tax information on the read-only fiscal memory at the time of sale. It was first introduced through Statutory 104 of 2010.

 

Who should fiscalise?

• All Value Added Tax (VAT) registered operators are required to fiscalise as outlined in SI 104 of 2010 as read with SI 148 of 2016 and SI 153 of 2016.

 

Do I benefit for being fiscalised?

The following benefits are enjoyed by VAT registered operators when they are fiscalised;

• VAT registered operators can claim 50% of the cost of acquiring the fiscal electronic register as Input Tax on your VAT 7 Return.
• VAT registered operators elect to claim 50% of the cost of the fiscal devices as S.I.A (Special Initial Allowance) under Income Tax.
• VAT registered operators have better control and management of their businesses as they can monitor all the transactions, which have to go through the fiscal devices.
• VAT registered operators have less paperwork to handle as the transactions electronically go through the fiscal device.
• The system will enable business people to record all sales transactions in a transparent manner and this will allow for ease of review of transactions by ZIMRA or other stakeholders.
• The accuracy of accounting records is enhanced by ensuring that all transactions go through the fiscal devices, with reduced human intervention-which can result in mistakes.
• Compliance means that clients are a law abiding citizens who are committed to help the government mobilise revenue for the development of the country.

 

COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

Commercial Vehicle, means any vehicle used for trading or used commercial purposes, for example, taxis, commuter omnibuses, hired vehicles, towing vehicles equipped   with lifting and towing equipment, buses, haulage trucks, funeral parlour vehicles among other vehicles. Commercial vehicles also include those used in the operation of transport services in transit through Zimbabwe. Such vehicles are cleared under Commercial Temporary Import Permit (CTIP). Triptyques or carnets may also be used in the place of a CTIP.

Foreign Commercial vehicles shall not remain in Zimbabwe for an unbroken period of more than:

• Three (3) working days Five (5) days for abnormal loads) if in transit through Zimbabwe in terms of the Customs and Excise (General) Regulations (SI 154 of 2001) Section 60(5)(e)
• 14 days if coming to offload and/or load goods in Zimbabwe (extensions may be made in circumstances approved by the Station/Shift Manager).

Carbon tax and third party Insurance shall be paid for all vehicles admitted on CTIP. However, where one holds a COMESA Yellow Card Insurance or the Automobile Association of South Africa Insurance Policy, third party insurance shall not be           charged.

A CTIP is valid for a maximum period of 90 days and multiple entries allowed within this   paid for multiple entry, the CTIP shall be processed for a period covered by a valid insurance and carbon tax. The CTIP shall be surrendered at the expiry of the 90 days, upon which a fresh CTIP shall be issued.

 

 

 

COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

ZIMRA would like to advise all its valued clients that all taxpayers who are not satisfied with an assessment or decision by the Commissioner have a right to object to the assessment and certain decisions issued by the Commissioner. The rights to object are provided for under the Acts as follows:

• Section 62 as read with the 11^th Schedule to the Income Tax Act
• Section 32 of the Value Added Tax Act
• Section 25 of the Capital Gains Tax Act

The decisions to which taxpayers can object to are referred to in the above acts and taxpayers should check whether the decision being objected on is listed in the above Acts.

Where and to whom should the Objection be lodged?

• The objection should be addressed to the Commissioner.
• The letters of objection are submitted at Head Office or at the nearest ZIMRA Office which the taxpayer deals with.
• Upon receipt of the objection, ZIMRA will acknowledge receipt and inform the client that the objection is going to be processed and a decision is going to be communicated to them.

 

Processing Steps of the objection

In summary, upon receipt of the objection, the following process take place:

1. The Case Officer who would have audited the case is required to write a report explaining his/her findings in response to the objection.
2. The Regional Technical Manager reviews the objection report and letter then drafts a report for the Regional Manager’s consideration.  
3. The Regional Report is submitted to the Commissioner at Head Office. The Regional report and letter of objection are reviewed by the Dispute Resolution Section. A report is prepared and submitted for consideration by the Commissioner.  
4. The commissioner reviews the reports submitted and comes up with determination.

Why is the Objection Process Important to Taxpayers?

1. The process provides unsatisfied taxpayers upon whom assessments or decisions are made with a platform for a fair hearing regarding particular tax issues which they need recourse on.
2. The objection process can change tax burden position of the dissatisfied taxpayer.

Important Conditions to Note when lodging an Objection

1. Any person dissatisfied with an assessment, decision or determination issued by the Commissioner may lodge an objection to the Commissioner, within 30 days after receipt of the notice of assessment or of the written notification of the decision or determination.
2. An objection must be done in writing to the Commissioner stating clearly the grounds of objection. A verbal objection cannot be accepted.
3. No objection shall be entertained by the Commissioner which is not delivered at his office or posted to him in sufficient time to reach him on or before the last day appointed for lodging objections, unless the taxpayer satisfies the Commissioner that reasonable grounds exist for delay in lodging his/her objection. Late lodgement of an objection outside the prescribed timelines has to be accompanied by justification as condonation is not automatic.

ZIMRA Determination.

On receipt of a notice of objection to an assessment, a decision or the determination, the Commissioner:

1. May reduce or alter the assessment, alter the decision or, as the case may be, increase or alter the reduction or may disallow the objection; and
2. Shall send the person upon whom the assessment has been made or to whom the decision has been conveyed or, as the case may be, to whom the reduction has been allowed, notice of the reduction, increase, alteration or disallowance.
3. Taxes legislation provides that a decision to an objection has to be done within three months after receiving the notice of objection.
4. Where a determination is not received within three months after receiving the notice of objection, the objection is deemed to have been disallowed.

 

Recourse if a taxpayer is not satisfied with the Commissioner’s determination.

1. Under Sections 65 of the Income Tax Act [Chapter 23:06], taxpayers can appeal to the Special Court for Income Tax Appeals or the High Court if not agreeable to the determination by the Commissioner. For VAT, the taxpayer can appeal to Fiscal Appeal Court. Every notice of appeal shall be in writing, shall state whether the appellant wishes to appeal to the High Court or to the Special Court and shall be lodged with the Commissioner within 21 days after receiving the determination to the objection.
2. The taxpayer can still further appeal to the Supreme Court if they are not satisfied with the Special Court for Income Tax Appeals or the High Court Special Court decision in terms of Section 66 of the Income Tax Act or sections 34 under the VAT Act.

COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

What are fringe benefits? ·         Fringe benefits means any amount of income which is paid or payable to any person whether in cash or otherwise in respect of services rendered. These are perks that employers give to their employees over and above any financial compensation. ·         These are advantages or benefits which are given to employees as incentives to retain their services. ·         Advantage or benefit includes board, occupation of quarters or residence, or the use of furniture or motor vehicle. It also includes the use of or enjoyment of any other property whatsoever, tangible or intangible, including a loan, an allowance, passage benefit and any other advantage or benefit whatsoever in lieu of or in the nature of remuneration as stated above. ·         Employee includes a director or a person otherwise gainfully employed.   Valuation of advantages or benefit   §  Occupation or use of quarters, residence or furniture – value to the employee is used to determine the taxable benefit. §  Loan - Where the Loan is USD$ excess of $100. There is a benefit if the interest rate payable is less than LIBOR rate plus 5%. For Zimbabwean dollar, a benefit will arise if the amount of the loan exceeds ZWL8,000.00 and the interest rate is less than 15%. §  Motor Vehicle – The cost to the employer shall be deemed to be as follows: Engine Capacity ZWL Deemed Benefit USD$ Deemed Benefit 1500cc or less ZWL54,000.00 USD675.00 1501 to 2000cc ZWL72,000.00 USD900.00 2001 to 3000cc ZWL108,000.00 USD1,350.00 Exceeding 3000cc ZWL144,000.00 USD9,800.00 §  School fees benefit Where the employer pays school fees for the employees’ children, the cost of the fees payable become taxable in the hands of the employee. However, in a case where the employee is a member of the teaching or non-teaching staff of the school, only half of the school fees benefit shall be brought into his gross income and this shall apply to only three of the children of the employee concerned. §  Passage benefit   The benefit covers the cost borne by the employer on travels by the employee, spouse of children which are not for the purposes of the employer’s business. This includes the cost of taking up employment or termination of employment where such costs have been previously offered to the employee. §  Any other advantage or benefit The cost to the employer is used to determine the taxable benefit.   COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. My Taxes, My Duties: Building my Zimbabwe!!   Disclaimer This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

Customs – Business Relationship   In line with international best practice and the Customs and Excise Act [Chapter 23:02] section 216B, Zimbabwe has implemented the Authorised Economic Operator (AEO) programme.   1.    Authorised Economic Operator (AEO) AEO is a programme under the World Customs Organisation (WCO) SAFE Framework of Standards to secure and enhance international supply chain security and facilitate movement of legitimate goods across international borders. An AEO may defined as a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs Administration as complying with WCO or equivalent supply chain security standards. AEO include inter-alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors. The facility is open to all stakeholders in this supply chain. 2.    ZIMRA AEO Programme Administered by Customs and Excise Division, the AEO Programme is a voluntary programme open to all business entities that participate in the global supply chain. Business entities that meet pre-determined compliance standards are accredited as AEOs and as such enjoy appropriate facilitation on Customs clearance. 3.    Benefits of AEO Programme Faster movement of cargo through the Border/Port of entry Simplified Customs formalities Fewer physical and document-based controls Reduced demurrage and other related costs Priority treatment in query resolution Choice of the place for physical examination Facilitation for movement of cargo during periods of trade disruptions Improved relations with ZIMRA Promotes an AEO accredited entity as a secure and reliable trade partner thereby improving business competitiveness. Mutual recognition of AEO authorizations between Customs authorities as a long term benefit. Provides businesses with internationally recognized security standards. The opportunity to self-assess allows entity to have a full insight into its operations and business practices, identify and strengthen any security or compliance related weaknesses 4.    Qualification Criteria Any entity interested in getting benefits of the AEO programme shall apply in writing to the Commissioner of Customs & Excise for accreditation. The entity must meet the following conditions: Be established in Zimbabwe; Have appropriate record of compliance with Customs and other relevant laws; Have a satisfactory system of managing commercial and, where appropriate, transport records; Have proven financial solvency; and Ensure that there is general maintenance of approved security and safety standards at both the entity`s place of operations as well as its business systems and procedures. 5.    AEO Application Process Consultation with nearest ZIMRA office on AEO application procedure Completion of and submission of self-assessment questionnaire, application form and other relevant attachments required for the granting of AEO status Examination of application by ZIMRA Onsite inspection by ZIMRA AEO authorization 6.    Obligations of an AEO The AEO is required to; Keep proper records it terms of Section 223 of the Customs & Excise Act [Chapter 23:02]. Maintain an accounting system which is in accordance with the Generally Accepted Accounting Practices (GAAP) and which facilitates audit based customs control. Ensure that its staff members conduct business in accordance with the procedures of the Customs & Excise Act and any other Act administered by ZIMRA or any instructions given by the Commissioner of Customs & Excise. Ensure a relationship of good faith is maintained by its staff at all times in dealing with the ZIMRA. Allow ZIMRA officers physical and electronic access to the information and documents as provided for in terms of Section 223 of the Customs & Excise Act. Use compatible E-Systems for Customs procedures and commit to regularly upgrade the systems. Ensure that its premises are in conformity with the appropriate security and safety standards.   COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe. My Taxes, My Duties: Building my Zimbabwe!!   Disclaimer This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

The Zimbabwe Revenue Authority (ZIMRA) has a facility for rewarding private individuals who choose to participate in plugging of revenue leakages through tax and duty evasion The whistle-blower facility rewards legitimate informants who provide information that result in the recovery of revenue which would otherwise have been lost if the information had not been given. This facility was established through Section 34B of the Revenue Authority Act (Chapter 23:11) in 2001. The administration of the facility was enhanced following the gazetting of Statutory Instrument 150 of 2020 on 26 June 2020 to regulate the administration of the rewards.

Eligibility to Report

• Any person who is not an employee of the Authority or member of the Revenue Authority Board
• Any person who is not a near relative of an employee of the Authority or a member of the Revenue Authority Board
• The person should not have obtained the information in the exercise of his/her official duties as an employee of the Authority or member of the Revenue Board.
• The person should not have obtained the information from an ineligible person for the purposes of avoiding rejection of a claim.

Information not eligible for a reward

• Already in the public domain at the time it is reported, for example, in the press, on the internet or any other public online domains.
• Obtained from a government report, hearing, audit or investigation including audits done by or on behalf of the Auditor General.
• Already in the custody of the ZIMRA Commissioner-General.
• Obtained by State employees or consultants hired by the State or any board member appointed by the State during the course of their official duties.

 

Determination of reward

The reward granted to a person for the supply and successful use of original information submitted for the purposes of section 34B (2) of the Act shall be at a rate of ten per centum of the revenue actually recovered. The term revenue refers to the principal liability established and does not include penalties, interest, fines and forfeitures to the State.

 

Conditions for Payment

A reward for the supply of information submitted to the Revenue Authority is paid to the person making a claim subject to satisfaction with the following conditions:

• Information reported for a reward by an eligible person was done through completion of form RFI 1 which is prescribed in the second schedule to Statutory Instrument 150 of 2020.
• The information on which the reward is based was submitted to Revenue Authority under penalty of perjury;
• The original information supplied contributed directly to the revenue actually recovered;
• The payment of the reward is funded from proceeds of revenue actually recovered;

 

N.B: Where the taxpayer is disputing the liability established; no reward will be paid until such a dispute has been resolved even if ZIMRA may have taken measures to recover the tax.

Confidentiality

ZIMRA undertakes to protect the identity of the informants at all times as provided for in the secrecy provisions of the Revenue Authority Act.  The following measures are in place to protect the identity of the whistle-blower and integrity of the facility:

• All ZIMRA employees are bound by the Oath of Secrecy in terms of Section 34 A of the Revenue Authority Act not to disclose whistle-blower details.
• Central and secure point for interface with informants i.e. Office of the Commissioner Revenue Assurance
• Investigators of the cases have no access to origin of the information
• No interface between the whistle-blower and the investigators

 

Important Information to Note

1. General information, hearsay or speculations, which do not prove specific violations of the Revenue Acts, the tax heads involved and the period of the offence, are not accepted for reward purposes.
2. Cases are not accepted if the information pertains to a case already under investigation by ZIMRA.
3. The provision of false information or misrepresentation by informants is an offence which attracts a fine not exceeding level seven or imprisonment for a period not exceeding two years or both such fine and such imprisonment. Potential whistle-blowers are strongly advised against abusing the facility to settle personal vendettas.
4. It should be noted that where one intends to benefit from the whistle-blower facility, the information furnished to ZIMRA should not have been reported to any other law enforcement agencies first such as Zimbabwe Republic Police (ZRP), Reserve Bank of Zimbabwe (RBZ), National Economic Conduct Inspectorate (NECI), and Zimbabwe Anti-Corruption Commission (ZACC).

 

Whistleblowing Under COVID--19

In support of the Government of Zimbabwe’s thrust to contain and mitigate the spread of the Covid-19 pandemic whistle-blowers are encouraged to lodge their reports on the email address This email address is being protected from spambots. You need JavaScript enabled to view it. and to contact the whistle blower office on Telephone No. (0242) 750126

COVID 19 is real. Always remember to sanitise, wash your hands with water and soap. Stay safe.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.